US blocks sale of Edelsten penthouse

Geoffrey Edelsten's bid to sell off his luxury Gold Coast penthouse just days after declaring bankruptcy has been blocked at the last minute by a US court.

The disgraced former doctor was due to put his multi-million dollar Palazzo Versace condo under the hammer on Sunday morning, amid claims the ostentatious pad was now "surplus to his needs".

It has been a tumultuous few months for Edelsten, 70, who split from reality TV star wife Brynne, 30, before Christmas and then filed for bankruptcy in America in early January.

But Edelsten's attempt to raise cash with the sale of the exclusive pad has floundered after a US court issued an order to cancel the sale on Friday (US time).

The emergency motion was brought by Edelsten's former US business partners, the Mawardi family, who have been battling with the flambouyant entrepreneur for control of an investment portfolio that includes a private jet, two slum housing complexes, fashion label and casino in the Dominican Republic.

"The proposed sale of the penthouse identified in the motion shall be cancelled forthwith by Edelsten," bankruptcy judge Lawrence Walter ordered.

Edelsten has also been blocked from selling or borrowing against any other assets he holds in Australia or overseas, and could face contempt charges for violating or ignoring the order.

Estate agency Lucy Cole Prestige said the auction had since been called off.

The double-storey, two-bedroom penthouse overlooking Main Beach was bedecked in marble in a $1.5 million refurbishment and a buyer would also have received the apartment's high-end Versace furnishings. Mr Edelsten also owns a luxury penthouse in Melbourne's CBD.

The ruling could also effect his ability to finance a divorce settlement with Brynne, legal experts say.

Edelsten's Australian solicitors declined to comment. Last week, legal firm Webb Korfiatis said their client would not sell any of his Australian assets.